Temporal: Continuous Yield Curves for Real-World DeFi

10 Pages Posted: 12 Jan 2024

Date Written: November 17, 2023

Abstract

Temporal is a novel liquidity protocol introducing market-determined, continuous yield and forward curves for digital assets. Addressing the inefficiencies prevalent in the current DeFi landscape, Temporal offers a solution that enables credit markets to reflect underlying economic conditions, brings economic efficiency of markets to their theoretical limit, and introduces customized maturities. The protocol's AMM mechanism (patent-pending) allows for fixed-rate credit markets at custom durations, creating real-time continuous yield curves. This paper presents the technical underpinnings of Temporal's AMM, including its interest rate determination mechanism, liquidity provision strategies, and the practical applications in yield trading and on-chain bond dealing. Temporal bridges a significant gap in DeFi’s infrastructure.

Suggested Citation

badade, rohan and Verma, Varun and Shaw, Ayush, Temporal: Continuous Yield Curves for Real-World DeFi (November 17, 2023). Available at SSRN: https://ssrn.com/abstract=4636450 or http://dx.doi.org/10.2139/ssrn.4636450

Rohan Badade

Independent ( email )

Ayush Shaw

Independent ( email )

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
133
Abstract Views
825
Rank
397,671
PlumX Metrics